Anybody in real estate?

I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

Quoting: Anonymous Coward 7736082

Just curious, but are you in an area where you can get a decent, clean, liveable house in a safe neighborhood for that price?

I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

Quoting: Anonymous Coward 7736082

Just curious, but are you in an area where you can get a decent, clean, liveable house in a safe neighborhood for that price?

Quoting: Anonymous Coward 28808096

Yes. I've already been searching in my area for almost a year just to get a genral idea of things. There are plenty of decnt 3 BR 2 BA homes with ok sized yards. The area I live in Delaware doesnt really have to many ghettos.

I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

I am a real estate agent- getting back into the business after 6 years of college and work in eco building materials. That said, I can probably get you pointed in a right direction. You are smart as you have 20-25% of the down payment. That is where you can get into a loan easier. That being said, lenders will still be looking at your credit. Most people who have 20 thousand dollars and live where crime is low are not people of a bad charactor, I dont know your specific situation.I suggest you find a good real estate agent- ask freinds and family or call and interview 3 agents. They will meet with you- check your local board of realtors or state licensing site to see if they are in good standing or have a record of problems. Ask the agent to refer to you a couple lenders. I recommend you get an FHA loan as that is what almost all small loans are, and when you put that much money down you can avoid exra monthly fees ( PMI). FHA has relaxed loan guidelines....still the lender will ask you to do this and that to get a formal approval. There is a pre approval, then there is a formal approval. The process to pre approval is usually one day, then you start shopping for a house, put up your deposit and write your offer, get it accepted,,,the final approval and funding is usually a month, but can vary depending on the lenders expertise and your credit situation.Dont worry about the lender pulling your credit. You screened a couple and have a good agent. Do what they recommend and you should be fineI hope this all helps

I am a real estate agent- getting back into the business after 6 years of college and work in eco building materials. That said, I can probably get you pointed in a right direction. You are smart as you have 20-25% of the down payment. That is where you can get into a loan easier. That being said, lenders will still be looking at your credit. Most people who have 20 thousand dollars and live where crime is low are not people of a bad charactor, I dont know your specific situation.I suggest you find a good real estate agent- ask freinds and family or call and interview 3 agents. They will meet with you- check your local board of realtors or state licensing site to see if they are in good standing or have a record of problems. Ask the agent to refer to you a couple lenders. I recommend you get an FHA loan as that is what almost all small loans are, and when you put that much money down you can avoid exra monthly fees ( PMI). FHA has relaxed loan guidelines....still the lender will ask you to do this and that to get a formal approval. There is a pre approval, then there is a formal approval. The process to pre approval is usually one day, then you start shopping for a house, put up your deposit and write your offer, get it accepted,,,the final approval and funding is usually a month, but can vary depending on the lenders expertise and your credit situation.Dont worry about the lender pulling your credit. You screened a couple and have a good agent. Do what they recommend and you should be fineI hope this all helps

I am a real estate agent- getting back into the business after 6 years of college and work in eco building materials. That said, I can probably get you pointed in a right direction. You are smart as you have 20-25% of the down payment. That is where you can get into a loan easier. That being said, lenders will still be looking at your credit. Most people who have 20 thousand dollars and live where crime is low are not people of a bad charactor, I dont know your specific situation.I suggest you find a good real estate agent- ask freinds and family or call and interview 3 agents. They will meet with you- check your local board of realtors or state licensing site to see if they are in good standing or have a record of problems. Ask the agent to refer to you a couple lenders. I recommend you get an FHA loan as that is what almost all small loans are, and when you put that much money down you can avoid exra monthly fees ( PMI). FHA has relaxed loan guidelines....still the lender will ask you to do this and that to get a formal approval. There is a pre approval, then there is a formal approval. The process to pre approval is usually one day, then you start shopping for a house, put up your deposit and write your offer, get it accepted,,,the final approval and funding is usually a month, but can vary depending on the lenders expertise and your credit situation.Dont worry about the lender pulling your credit. You screened a couple and have a good agent. Do what they recommend and you should be fineI hope this all helps

Quoting: WalkerTalker2

Yeah I've been saving this $30,000 for quite a few years now. I've always paid my one credit card on time so my credit is good but just not built up. I'm just hoping that doesn;t hold me back.

I've been doing some minor research on real estate agents but for the most part I'm still clueless. How much would it cost to talk/interview with one and do they provide access to foreclosures in the area that are not listed on websites?

I am a real estate agent- getting back into the business after 6 years of college and work in eco building materials. That said, I can probably get you pointed in a right direction. You are smart as you have 20-25% of the down payment. That is where you can get into a loan easier. That being said, lenders will still be looking at your credit. Most people who have 20 thousand dollars and live where crime is low are not people of a bad charactor, I dont know your specific situation.I suggest you find a good real estate agent- ask freinds and family or call and interview 3 agents. They will meet with you- check your local board of realtors or state licensing site to see if they are in good standing or have a record of problems. Ask the agent to refer to you a couple lenders. I recommend you get an FHA loan as that is what almost all small loans are, and when you put that much money down you can avoid exra monthly fees ( PMI). FHA has relaxed loan guidelines....still the lender will ask you to do this and that to get a formal approval. There is a pre approval, then there is a formal approval. The process to pre approval is usually one day, then you start shopping for a house, put up your deposit and write your offer, get it accepted,,,the final approval and funding is usually a month, but can vary depending on the lenders expertise and your credit situation.Dont worry about the lender pulling your credit. You screened a couple and have a good agent. Do what they recommend and you should be fineI hope this all helps

Quoting: WalkerTalker2

Yeah I've been saving this $30,000 for quite a few years now. I've always paid my one credit card on time so my credit is good but just not built up. I'm just hoping that doesn;t hold me back.

I've been doing some minor research on real estate agents but for the most part I'm still clueless. How much would it cost to talk/interview with one and do they provide access to foreclosures in the area that are not listed on websites?

Quoting: Anonymous Coward 7736082

don't pay anyone to see their 'secret' list, just speak with a reputable agent in area. Also, stop in some local bank branches and inquire there. Usually a list of auctions in local papers as well.

Why don't you volunteer to work for 'Habitat for Humanity'. In about one year you will learn how to build a house from scratch. Take notes. Ask to be allowed to show up early before the ground is even broken so that you can see the whole process. Consider even mounting a camera so that you can monitor the process when you are not there.

good questions. I favor agents who dont show the clients the highest priced home, but the BEST deals ( I am that kind). Its a lot of fun seeing the inventory of the hot deals out there. It changes all the time....Usually when you find a good agent you start looking the day you prequalify for the loan. You will soon develop an idea of what you like and want.Normally the agent gets paid a commision after you buy a house, so there is no intial fee--or charges to prequalify you or take you out to view property or write offers.Its a lot of fun....and an emotional roller coaster ride for a lot of people, especially during the offer process and escrow. You will learn a lot, i am sure.Dont buy the first house. Look at half a dozen if you can. Ask the agent to pull recent "comps" and aim to buy UNDER current market by 5-10% if you can. Dont get too greedy and dont be in too big a rush. If the deal is hot- make an offer- dont delay- dont sleep on too many deals- give it an offer. Keep your agent busy-show up on time to view the properties.When you find the house you love, make a reasonble lower offer, and dont quibble too much when the seller counters at a higher price. Always , ALWAYS ask the seller to pay 2000 dollars towards closing costs, it saves you money if they agree. No matter what they say--there are not as many buyers out there now, so the sellers are motivated. FIND A BUYERS agent that will fight for a low price for you and not try to get you to hurry up (so he or she gets paid the commision). Seller pays the commision- but you enable it as you are buying the house.....Take your time, but be polite and respectful to people in the business. 'Hows that for some free advice!!??Good luck

good questions. I favor agents who dont show the clients the highest priced home, but the BEST deals ( I am that kind). Its a lot of fun seeing the inventory of the hot deals out there. It changes all the time....Usually when you find a good agent you start looking the day you prequalify for the loan. You will soon develop an idea of what you like and want.Normally the agent gets paid a commision after you buy a house, so there is no intial fee--or charges to prequalify you or take you out to view property or write offers.Its a lot of fun....and an emotional roller coaster ride for a lot of people, especially during the offer process and escrow. You will learn a lot, i am sure.Dont buy the first house. Look at half a dozen if you can. Ask the agent to pull recent "comps" and aim to buy UNDER current market by 5-10% if you can. Dont get too greedy and dont be in too big a rush. If the deal is hot- make an offer- dont delay- dont sleep on too many deals- give it an offer. Keep your agent busy-show up on time to view the properties.When you find the house you love, make a reasonble lower offer, and dont quibble too much when the seller counters at a higher price. Always , ALWAYS ask the seller to pay 2000 dollars towards closing costs, it saves you money if they agree. No matter what they say--there are not as many buyers out there now, so the sellers are motivated. FIND A BUYERS agent that will fight for a low price for you and not try to get you to hurry up (so he or she gets paid the commision). Seller pays the commision- but you enable it as you are buying the house.....Take your time, but be polite and respectful to people in the business. 'Hows that for some free advice!!??Good luck

Quoting: WalkerTalker2

Thanks man, I aprreciate all the help. I guess it's time to look for a real estate agent in the area.

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.

Quoting: Anonymous Coward 4555299

Have thought about that option but i prefer to go a more safer route. Maybe a bit pricier foreclosed home that is move in condition with just a little work is the goal.

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.

Quoting: Anonymous Coward 4555299

Actually at this price level this person wouldn't have enough interest to offset the standard tax deduction.

That said, the credit issue should be fine. Better than most - bankrate.com has mortgage calendars to see what the payment would be. 20% down on a $70,000 loan is $14,000. That leaves a mortgage in the amount of $56,000.

56,000 at 3.5% for 30 years is $251.4756,000 at 3.0% for 15 years is $386.73

You need to add Property taxes and homeowners hazard insuance to that amount.

With the 20% down you are not obliged to pay mortgage insurance.

You should never pay a realtor to talk to them.

My first home was a bank repo - they supplied the mortgage since I was purchasing one of their homes.

Keep the rest of your cash for savings. You never know what might happen in the future - to the home or to you.

When looking at the mortgage interest rate - take into account the points that they are charging on the loan. You have to add the interest rate of the loan with the origination points charged for the actual loan.

For example:a 3.25% loan with a 2 point origination fee actually costs you 5.25%

a 3.75% loan with no origination fee actually costs you 3.75%

a 4.0% loan with a originatio fee of -.50 (yes some loans pay you for taking a higher interest rate) will actually cost you 3.50%

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.

Quoting: Anonymous Coward 4555299

Actually at this price level this person wouldn't have enough interest to offset the standard tax deduction.

That said, the credit issue should be fine. Better than most - bankrate.com has mortgage calendars to see what the payment would be. 20% down on a $70,000 loan is $14,000. That leaves a mortgage in the amount of $56,000.

56,000 at 3.5% for 30 years is $251.4756,000 at 3.0% for 15 years is $386.73

You need to add Property taxes and homeowners hazard insuance to that amount.

With the 20% down you are not obliged to pay mortgage insurance.

You should never pay a realtor to talk to them.

My first home was a bank repo - they supplied the mortgage since I was purchasing one of their homes.

Keep the rest of your cash for savings. You never know what might happen in the future - to the home or to you.

When looking at the mortgage interest rate - take into account the points that they are charging on the loan. You have to add the interest rate of the loan with the origination points charged for the actual loan.

For example:a 3.25% loan with a 2 point origination fee actually costs you 5.25%

a 3.75% loan with no origination fee actually costs you 3.75%

a 4.0% loan with a originatio fee of -.50 (yes some loans pay you for taking a higher interest rate) will actually cost you 3.50%

Hope this helps.

Tex

Quoting: Tex 20929967

More great advice. I'm actually shocked at some of the knowledge here. I will keep this thread updated during my search and maybe post some links to some homes once I start getting serious with a few options.

Op, you seem hell bent on borrowing money to get what you want. Why not work a 2nd job until you have the money to pay CASH for a modest house? My uncle just did it last year. Then you don't have to pay any attention to the real estate clowns who are always spouting fact and figures.

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.

Quoting: Anonymous Coward 4555299

"....much better to hold tight and rent until things get better" ???????

How long have you been on GLP?

Kudos to you, OP, for saving a big down payment. I'm just a nobody (not THE nobody)...but I would say you have the right idea to get a cheap house, pay a lot of it down and have hope of paying it off soon, or at the very least, have a payment that is manageable (lower than rent)...especially if you find a place where taxes are extremely low. Yearly taxes (spread out monthly) can be as much as the house payment, effectively doubling your monthly payment. Don't forget to factor the taxes in when you are calculating. Many people don't understand how that works.

If you have good credit, get max loan with as little down has possible. Home prices are still unstable. Too much stimulus and fake low rates from fed. Banks still holding foreclosures off market. When rates finally move up the bottom will be in. So if the market falls you can just walk. Plus put that money to work. If market stabilize and you bought at a good price you can always pay down with investment earnings. But don't throw hard earned cash into this fed induced shit hole.

Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc. Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure. Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition. Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.

Quoting: Anonymous Coward 4555299

"....much better to hold tight and rent until things get better" ???????

How long have you been on GLP?

Kudos to you, OP, for saving a big down payment. I'm just a nobody (not THE nobody)...but I would say you have the right idea to get a cheap house, pay a lot of it down and have hope of paying it off soon, or at the very least, have a payment that is manageable (lower than rent)...especially if you find a place where taxes are extremely low. Yearly taxes (spread out monthly) can be as much as the house payment, effectively doubling your monthly payment. Don't forget to factor the taxes in when you are calculating. Many people don't understand how that works.

Quoting: Anonymous Coward 23794435

Yeah I've looked into that a bit too, the houses I'm targeting seem to ust be arpund $500 yearly tax so that shouldn't be a problem at all.

With interest rates so low now, it's OK to finance. Just put the minimum amount required to secure the loan as you need a cash reserve and you won't be broke if you lose it and become homeless.

Quoting: Doominator 162364

WRONG. WRONG. WRONG. Interest rates have nothing to do with anything. What you need to know is if you are going to stayed employees consistently enough to cover your mortgage for the next 15 to 30 years. The earning ability question is critical. Nest to that question, interest rates are meaningless.